Are capital gains taxed differently in different countries?

Capital gains are taxed quite differently in different countries. Some countries charge no capital gains tax. Most do include capital gains in taxable income but often at a different rate than that of regular income such as wages. The tax rate for capital gains can be either lower or higher than rates for regular income.

Capital gains are profits from the sale of a non-inventory asset at an amount higher than it was purchased for. Examples of non-inventory assets include corporate stock, a business, a piece of art and a parcel of land.

As of March, 2015, two countries that do not charge a capital gains tax are Barbados and Singapore. In Singapore, however, professional traders (those who buy and sell securities for a living) are an exception. For traders in Singapore, capital gains are regarded as income and taxed at the same rates as personal income.

In Estonia, all residents are taxed at the same rate for capital gains as for regular income. The tax rate in that country is 21% across the board.

In Austria, capital gains are taxed at 25%, but there is an exception known as Schachtelprivileg for sale of foreign entities with opaque taxation. This exception requires that participation exceeds 10% and the shareholder holds the shares for more than one year.

In Canada, only 50% of realized capital gains are taxable. These are then taxed at the individual's tax rate. Certain exceptions apply, however. For example, the sale of one's primary residence may be tax exempt.

In the United States, individuals and corporations pay taxes on the net total of their capital gains in their federal income taxes, although some exceptions exist. Short-term capital gains are taxed at a higher rate than regular income, whereas long-term capital gains are taxed at a lower rate. On the other hand, for some tax brackets, the federal government charges no taxes on long-term capital gains, which are defined as profits on assets that have been held for over a year before being sold.